SurModics Reports Organizational Changes
Sep 09, 2013 (Close-Up Media via COMTEX) --
SurModics, Inc., a provider of surface modification and in vitro diagnostic technologies to the healthcare industries, announced executive leadership and other organizational changes intended to strengthen the Company and better position it for long-term growth.
According to the Company, effective immediately, two areas will begin reporting directly to CEO Gary Maharaj: SurModics' Quality, Regulatory and Clinical Affairs function; and its Medical Device Research and Development function. These moves are designed to give these areas the executive focus and alignment required to fulfill SurModics' strategic goals. These functions had previously reported to business segment leaders. In addition, Vice President of Finance and Chief Financial Officer Andy LaFrence will now oversee the Company's Operations and Information Systems functions, in addition to his current responsibilities. SurModics is also realigning its workforce.
"After completing our annual strategic planning process, we determined that changes to our organization were necessary to more closely align the Company with our business strategy to grow our core businesses and lay the foundation for core expansion," said Maharaj. "The actions announced will enhance our focus on key growth initiatives for our two segments. They also will allow us to increase the investments we are making in our business, such as building a more robust pipeline of technologies and products."
In addition, SurModics announced a strategic realignment of its workforce affecting 7 employees, or approximately 6 percent percent of its staff. Maharaj noted, "The decision to eliminate positions is always a difficult one. We believe these changes are necessary to direct resources into those areas most likely to generate growth. We appreciate the efforts of our colleagues who are affected by today's announcement, and we are grateful for their significant contributions to our company." SurModics expects to redeploy the expected annualized savings of approximately $0.9 to $1.1 million toward its strategic growth initiatives.
As a result of the changes announced, the Company expects to take a one-time pre-tax charge of approximately $0.5 million, or $0.02 per share, in the fourth quarter of fiscal 2013 ending September 30, primarily related to severance costs.
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